________ occur when a company does business with another entity whose management or operating policies can be controlled or significantly influenced by the company or by some other party in common.

Question

Quizplus · Accepted Answer

Related-party transactions occur when a company does business with an entity in which it has significant control or influence. This can include subsidiaries, affiliates, or other parties with whom the company has a close relationship. It is important for companies to disclose these types of transactions in their financial statements to ensure transparency and avoid conflicts of interest. Illicit transactions, family transactions, and adversarial transactions are not necessarily related to control or influence over another entity's management or operating policies.

________ Occur When a Company Does Business with Another Entity